Press Release: Statement by IMF First Deputy Managing Director Anne O. Krueger on Chad
January 9, 2006Press Release No. 06/05
Ms. Anne O. Krueger, First Deputy Managing Director and currently Acting Managing Director of the International Monetary Fund (IMF), made the following statement today:
"The World Bank President has announced that the Bank has suspended all disbursements on its operations in Chad. The IMF Management has been kept fully informed by the World Bank and supports the action it has taken. The World Bank Management's decision followed the adoption by parliament of amendments to the petroleum revenue management law (PRML). This law, which was put in place alongside the World Bank's support for the development of the oil pipeline to Chad, was designed to ensure that revenues from oil are used to reduce poverty and meet Chad's most urgent needs.
"The staffs of the World Bank and the IMF have for several months been in discussion with the Chadian authorities on the government's desire to modify the PRML. Together we have stressed that any amendment of the law should be based on a joint review of the operations of the PRML rather than unilateral action and we have jointly offered assistance to strengthen budget management.
"We are committed to continued dialogue with the authorities, and hope that a resolution of the issues surrounding the amendments to the PRML can be reached as soon as possible.
"The IMF has been supporting the Chadian government's economic policies under a Poverty Reduction and Growth Facility (PRGF) arrangement approved in February 2005 in an amount equivalent to SDR 25.2 million (about US$36.4 million—see Press Release No. 05/30). The first review under this arrangement, which included an assessment of performance through end-June, has not been completed largely because of a deterioration in fiscal performance. Satisfactory resolution of the issues surrounding the amendments to the PRML, coupled with actions to correct the deterioration in fiscal performance that has already occurred, would be an important step towards completion of the first review under the PRGF arrangement," Ms. Krueger said.